Posted on May 8, 2017 by JMS Advisory Group |
UPDATE: This legislation was passed and signed by the SD Governor on March 10, 2017. It is effective immediately.
In newly proposed legislation, the state of South Dakota will require the state Treasurer to sell any stock, bond or other equity instruments within 90 days of receiving these items as unclaimed property, unless such an unclaimed item is subject to an active or open claim. The current law requires the Treasurer to hold on to these instruments for at least one year prior to selling. Of course the new law also absolves the Treasurer of any liability associated with loss of value resulting from such a sale. Notice to the apparent owner is required, but that may be small consolation to the owner of an equity interest that lives abroad (for example) and would rather his/her stock simply appreciate. The lesson here: maintain extreme diligence over your financial holdings and any agencies that manage such holdings for you personally.
The legislation is part of a disturbing trend and is presently moving through the South Dakota Senate toward passage.
Stay tuned to our blog for further developments and contact us with any questions about unclaimed property compliance.
[copy & paste link] http://sdlegislature.gov/docs/legsession/2017/Bills/SB34P.pdf